"We used to think you could spend your way out of recession and increase employment by boosting government spending,â? boomed the Prime Minister, Jim Callaghan, at the 1976 Labour Party conference.
â??I tell you, in all candour,â? he went on, â??that that option no longer exists. And in so far as it ever did exist, it only worked on each occasionâ?¦ by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next stepâ?¦â?
The above words are among the most important uttered in the history of modern British politics.
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